FOR IMMEDIATE RELEASE
PIKOM : 8% OVERALL GROWTH IN ICT SPENDING ESTIMATED FOR 2010
Steps taken by the Government, new applications and purchase cycle reasons behind the positive projection
Kuala Lumpur, Friday (January 15, 2010) - The NATIONAL ICT ASSOCIATION OF MALAYSIA, PIKOM, has released its annual analysis of ICT spending that it moderated for the previous year and projects an encouraging 8% overall growth for the industry in 2010.
Overall for 2009, moderate growth in the industry was recorded but it is clear that all sectors involved showed curtailment in spending brought on by the recession.
Of particular note, spending on hardware, although slightly improved from 2008 recorded a negative growth of 5%. CJ Ang, president of PIKOM,said that this was not surprising as hardware is a major purchase decision and many consumers and businesses would hold off on upgrades or new equipment until better times. The outlook for this sector however, looks bright and PIKOM expects it to rebound into positive growth for 2010.
Ang said, “In fact, we expect all sectors to improve significantly. Naturally we do not expect a full return to double-digit growth as evidenced in 2006 and 2007 pre-recession, but we feel that current underlining economic conditions – both locally and globally (especially in the USA) -- are improving. This in turn will generate higher demand for ICT products and services.”
Describing PIKOM’s 8% growth projection for the year as cautiously optimistic, Ang elaborated that three main factors had determined the projection:
“Government action: The incentives and tax breaks provided by the Government will accelerate growth. We are encouraged by Government spending to drive demand and stimulate other sectors. Unutilised allocation from the 9th Malaysia Plan for ICT must be utilized by year’s end. Furthermore, there are tax reliefs on broadband subscription as well as the 1% reduction of income tax for selected groups which means higher disposable income for purchases. The implementation of loans to civil servants for PC purchases every three years instead of the previous five years will also stimulate demand. There’s also the provision of Netbooks for university students whereby up to 100,000 students will be provided with a Netbook and broadband connection for a mere RM50 a month for two years. The Government’s strong focus on Islamic banking will further spur this sector and result in more implementation of ICT.
“New applications: Then, there’s the expected growth in online and mobile applications and usage. This, coupled with the rollout of broadband and HSBB and related services would rally the industry. Similarly the launching of new applications such as the implementation of the petrol subsidy system will require ICT to enable it. Also, preparation work for the introduction of GST will also require investments in ICT,” he said.
Ang added, “Purchase cycle was the final factor. We have also not discounted natural consumer spending behaviour which will express itself as pent-up demand for ICT products, especially for hardware. This augurs well for the industry and translates into a more positive outlook for our industry.”
About PIKOM
PIKOM, THE NATIONAL ICT ASSOCIATION OF MALAYSIA is the association representing the information and communications technology (ICT) industry in Malaysia. Its membership currently stands at over 1,300 comprising companies involved in a whole spectrum of ICT products and services which commands 80% of the total ICT trade in Malaysia. PIKOM works to improve the business climate in the interests of all its member companies and to promote industry growth in line with national aspirations.
PIKOM's membership is open to all Malaysian companies who supply ICT products and services in the computing and telecommunications industries. However, non-ICT companies are also welcome to join the Association as associate members.
Issued by: NexusPR Sdn Bhd
On behalf of: PIKOM
For further information, please contact BG Tay at Tel: (03) 7725 1908 or 012-202 5898;
| 
THE ASSOCIATION
